There is always a reason to ask a donor to make a pledge. A pledge is more than a time payment plan which makes a large gift financially comfortable for a donor. A pledge is a way for a donor to express their desire to provide dependable support for a mission and clients that are important to them.
Part of the donor cultivation process is to prepare every donor to make a pledge. Even if your donor is only making a minimum donation, after the donor has made three consecutive gifts, it is time to ask the donor to pledge to make that same gift for the next several periods (months, quarters, or years).
Once is a fluke.
Twice is a coincidence.
Three times is the start of a pattern.
Once the donor establishes a pattern of giving (once a year, once a quarter, or once a month), you know your mission and clients are important to the donor. It is likely they are willing to make a pledge. Making a pledge is just formalizing what is already happening. Because they care, they want your nonprofit to have a steady and reliable source of income (sustainable funding stream). When you ask, they will probably say yes. If necessary, you can tell them how important they are and how much you appreciate knowing your nonprofit will have their steadfast support.
It is unnecessary for the pledge to be a formal agreement. After all, they have an emotional relationship built on their confidence and trust in your nonprofit and its leadership and you should have the same confidence in the donor. The donor is motivated to keep the commitment as long as they trust your nonprofit and feel satisfied with the results their gifts enable. At the same time, the pledge adds an additional layer of commitment to the relationship, which strengthens your relationship and increases the sustainability of your funding stream. The pledge also provides your board and staff with an increased sense of financial security, which makes long-term planning easier and makes it feel more realistic to dream about a future 5 or 10 years from now. The sustainability of your nonprofit is enhanced by having a long-term plan and the increased stability of your funding stream.
Ideally, you will link the pledge to something concrete. One often thinks of a pledge being associated with a building program. In addition, it could be associated with anything that is happening at your nonprofit. It is best to avoid linking the donation to the general operating budget. It is hard to provide specific or vivid results to a general gift. Therefore, it is hard to link the donor’s heart to the mission, clients, or results.
Let us assume it takes six months for a client to complete a nonprofit’s program. After a few months of giving $25 per month, the fundraiser might ask the donor to increase his or her monthly contribution from $25 per month to $30 for the next six months to help a client afford the program. This is a good way to initiate a pledge. The pledge is attached to something concrete (a client’s journey). It is something with a start and end so the donor will feel comfortable they are making a limited commitment. It is easy for the donor to connect the pledge to the mission and clients. It will provide the donor with a sense of accomplishment and fulfillment when the client completes the program. It is easy to report to the donor about progress along the way and when the journey ends. Since there is always another client starting the program, it is also easy to renew the pledge when the client’s journey is complete.
When a donor is hesitant about making a pledge, it says the donor needs more cultivation, a different opportunity needs to be presented, or the opportunity needs to be presented in a different way. It also indicates the fundraiser needs to evaluate the process for determining when a donor is well cultivated.
Next Step:
Make a list of the pledging opportunities at your nonprofit
Review your donor base and identify those donors who makes regular gifts (annually, quarterly, etc.)
Match regular donors with pledging opportunities based upon the interests of the donors
Mention one or more of the pledging opportunities during your next cultivation meeting with each donor
A pledge is a two-way commitment. The donor is pledging to support your nonprofit for a fixed period of time or until some event occurs. The donor has the expectation that your nonprofit will continue to produce great outcomes and provide great service to your clients. Both sides of the pledge expect the other side to meet its expectations without exceptions. The renewal of the pledge depends on both sides keeping their promise.
Your nonprofit’s hope is that the donor will increase their pledge. Donors will probably fulfill your hope if your nonprofit can demonstrate (anecdotes plus evidence) that you are doing more today than you were when the pledge was made.
Take It Further:
Ask your volunteers to pledge their support
Keep your board informed about the expectations the donors have and what your nonprofit must do to exceed expectations so you can ask your donors for an increase (ensure the expectations are mission and client centric)
Encourage your board to structure your nonprofit so there are plenty of pledging opportunities (activities and goals that will appeal to your donors)
Encourage your board to establish multi-year plans so that you have plenty of opportunities to ask your donors for multi-year pledges
Ensure your accounting system is able to track and report on designated funds (each pledge is a designated gift)
